I dunno [Edit for Zealous mods “dunno” is a phonetic way of saying "Don’t know - it is not "Gibberish 
] - We used to get spreads running away in front of sudden price changes in the old spread betting days too. They sort of widened in proportion to the emotional pressure the movement was inflicting ! TBH I don’t blame them for that - It just seems logical if you’re taking the reverse side of the bets.
In fact, whatever you call it, without level 2 direct access any system with a gap between Bid and Ask - is just that- “Spread betting” - except these people actually add interest to overnight positions, despite them being pure “Bets” . - The other thing is that in the UK at any rate “Spread betting” does not attract tax = probably because it would end up being a tax-negative situation from HMRC viewpoint.
This “Trading” - I believe does mean paying tax, although to hit “Capital gains” limits would make you a specially gifted person !
_bob and Falstaff,
If you take a look at the original post, you’ll see the feed is from IDC not FXCM. Falstaff, if you could let me know what time frame your chart is, I’ll be happy to post a screenshot of FXCM’s charts for EUR/USD during the same time frame so that you may compare.
If you take a look at the news events of the day (10/31), you’ll see there were a number of news events that day such as Euro Zone CPI, GDP data, and EUR unemployment rate release that cause high market volatility leading to a small number of liquidity providers pricing that day.
I’d also like to clarify that FXCM is no longer affiliated with DailyFX in anyway.
All the best with your trading!
Jason
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Jason, The chart is 1 minute time frame as can be seen from the times at the bottom. The same phenomenon occurs on all the larger tme frames intraday.
However it ceases if the 1 day chart and higher timeframes are consulted, so clearly those timeframes are not using the same data.
The same chart is even as I type demonstrating the same issue, with the Lowas at an exact round pip position. which the open high and close do not
Hello Falstaff,
Can you let me know which time zone the chart times are in and I’ll post the FXCM chart for that same time frame for EUR/USD, m1.
Jason
Hi Jason, I’m Uk and currently we are on GMT
Although at the top of the cart it does state "31 October 2017 15:27 EST "
The times dislayed at the bottom of the chart are GMT though
Hello Falstaff,
Below you can take a look at FXCM’s pricing for that time frame. As I stated previously, news events can cause affect market volatility. There were a number of news events released on the 31st that affected both the EUR and USD pairs. CPI and GDP data were released for the Eurozone and The S&P/Case-Shiller Home Price Indices data was release for the US housing market. Both of these events can cause extreme market volatility.
Jason
Thank you Jason, Your chart does not appear to show the long tails which are shown on the DAilyfx charts I published, and are still showing on todays charts from them.
The range of values for 31.October. 2017 on my calculation is High !.16615 Low 1.16250 - A total range for the day of 36.5 pips. A decent enough bet if you could catch every single pip, but all in all a very flat day.
So I’m not quite sure why you want to talk about News and Volatility for such a day, but I accept that the chart you published does not appear to show the long Tails I was talking about .
